MIRA INFORM REPORT

Report Date :

28.08.2008

IDENTIFICATION DETAILS

Name :	NATRAJ OIL MILLS PRIVATE LIMITED
Registered Office :	2-16, Melur Main Road, Uthangudi, Madurai – 625 107, Tamilnadu
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	14.07.1993
Com. Reg. No.:	18-25443
CIN No.: [Company Identification No.]	U24294TN1993PTC025443
TAN No.: [Tax Deduction & Collection Account No.]	MRIN00265G
PAN No.: [Permanent Account No.]	AAACN6846Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporter of Agro Products.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 50000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Payments are usually correct and as per commitments. The company is doing well. It can be considered good for normal business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Ramnath
Designation :	Director
Contact No.:	91-452-2424989
Date :	25.08.2008

LOCATIONS

Registered Office :	2-16, Melur Main Road, Uthangudi, Madurai – 625 107, Tamilnadu, India
Tel. No.:	91-452-2422765
Fax No.:	91-452-2422989
E-Mail :	info@anjalifoods.com sales@anjalioil.com
Website :	www.anjalifoods.com
Factory :	1-2/16, Chennai High Way, Uthangudi, Madurai – 625 107, Tamilnadu, India
Tel. No.:	91-452-2424989 / 2422765 / 2423352
Fax No.:	91-452-2422989
E-Mail :	anjalioil@sify.com
Area :	5 Acre
Location :	Owned

DIRECTORS

Name :	Mr. KSR Natarajan
Designation :	Chairman cum Managing Director
Address :	590, KK Nagar, Madurai – 625 020, Tamilnadu, India
Date of Birth/Age :	11.06.1948
Qualification :	B.com.
Experience :	40 Years
Date of Appointment :	14.07.1993
Name :	Mr. N Vijayalakshmi
Designation :	Director
Address :	590, KK Nagar, Madurai – 625 020, Tamilnadu, India
Date of Birth/Age :	23.06.1949
Date of Appointment :	14.07.1993
Name :	Mr. N Senthilnathan
Designation :	Whole Time Director
Address :	590, KK Nagar, Madurai – 625 020, Tamilnadu, India
Date of Birth/Age :	21.06.1974
Qualification :	M.com.
Experience :	15 Years
Date of Appointment :	14.07.1993
Name :	Mr. Ramnath Shankar Natarajan
Designation :	Director
Address :	590, KK Nagar, Madurai – 625 020, Tamilnadu, India
Date of Birth/Age :	26.06.1980
Qualification :	B.Tech
Experience :	7 Years
Date of Appointment :	21.01.2004

KEY EXECUTIVES

Name :	Mr. D Sivasubramaniyan
Designation :	Company Secretary
Address :	Plot No. C-234, Kamarajar Street, Thirunagar, Madurai – 625 006, Tamilnadu, India
Tel No.:	91-452-2487335

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 31.03.2007)

Names of Shareholders	No. of Shares
KSR Natarajan	28550
N Vijayalakshmi	20450
N Senthilnathan	21000
N Ramnath Shankar	21000
Total	91000

Equity shares Breakup (percentage of total equity)

(As on 30.09.2007)

Category	Percentage
Directors or relatives of Director	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Gingelly Oil and Gingili Oil Cake
Products :	· Indian pickles · Mixed fruit jams · Pappadam · Garlic Pickle · Mango pickle · Bikaneri papads · Lime Pickle · Gingelly Oil · Chilli pickle · Cooking pastes and mixed vegetable pickle
Exports :
Products :	Food Products Pickles and Papad and Oil Tel
Countries :	· South Asia Countries · USA
Terms :
Selling :	L/C, Cash and Credit (30 days / 60 days / 90 days) – 90% 10%
Purchasing :	Cash – 100% Cash

GENERAL INFORMATION

Customers :	· Wholesalers · Retailers · Dealers Dealers · Kartika Agencies, Madurai · New Raja Agencies, Chennai · S K Oil Source, Chennai
No. of Employees :	260
Bankers :	Canara Bank SME Branch, Madurai, No. 50, Bye Pass Road, Madurai – 625 003, Tamilnadu, India
Facilities :	CC Rs.50.000 millions

Banking Relations :	Satisfactory
Auditors :
Name :	P V Rajarajeswaran
Address :	193, Palace Road, Madurai – 625 001, Tamilnadu, India
Tel No.:	91-452-2334491

CAPITAL STRUCTURE

(As on 30.09.2007)

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
91000	Equity Shares	Rs.100/- each	Rs.9.100 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		9.100	9.100	4.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.973	0.705	3.314
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		10.073	9.805	7.314
LOAN FUNDS
1] Secured Loans		24.606	18.792	11.123
2] Unsecured Loans		2.698	3.532	2.873
TOTAL BORROWING		27.304	22.324	13.996
DEFERRED TAX LIABILITIES		0.234	0.329	0.385
TOTAL		37.611	32.458	21.695
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.137	4.518	4.664
Capital work-in-progress		1.599	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.928	12.362	9.908
	Sundry Debtors	22.118	14.862	11.043
	Cash & Bank Balances	1.902	2.395	0.772
	Other Current Assets	2.600	1.473	0.000
	Loans & Advances	0.000	0.000	0.958
Total Current Assets		38.548	31.092	22.681
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	6.747	2.722	5.098
	Provisions	0.765	0.908	1.064
Total Current Liabilities		7.512	3.630	6.162
Net Current Assets		31.036	27.462	16.519
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
Deposits and Advances		0.839	0.478	0.512
TOTAL		37.611	32.458	21.695

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		190.420	151.000	100.795
Other Income		0.429	0.759	0.592
Total Income		190.849	151.759	101.387
Profit/(Loss) Before Tax		0.564	0.584	0.721
Provision for Taxation		0.290	0.277	0.273
Profit/(Loss) After Tax		0.274	0.307	0.448
Expenditures :
	Cost of Production	163.355	135.786	80.213
	Financial charges	3.681	3.449	2.210
	Administrative Expenses	22.005	13.568	14.922
	Increase/(Decrease) in Finished Goods	0.433	(2.454)	2.515
	Depreciation & Amortization	0.811	0.826	0.793
	Prior Period Expenses	0.000	0.000	0.013
Total Expenditure		190.285	151.175	100.666

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	0.14	0.20	0.44
Net Profit Margin (PBT/Sales)	(%)	0.30	0.39	0.72
Return on Total Assets (PBT/Total Assets}	(%)	1.32	1.64	2.64
Return on Investment (ROI) (PBT/Networth)		0.06	0.06	0.10
Debt Equity Ratio (Total Liability/Networth)		3.46	2.65	2.76
Current Ratio (Current Asset/Current Liability)		5.13	8.57	3.68

LOCAL AGENCY FURTHER INFORMATION

Trustseal Acceptance Chart

Parameters	Details
Existence Verification
Name	NATRAJ OIL MILLS PRIVATE LIMITED
Statutory Approvals
Legal Status of Firm	Private Limited
Income Tax Registration	AAACN6846Q
Central Sales Tax Registration	118525 – Date 10.08.1994
VAT/ TIN Registration	33774940751
Name of Bank	Canara Bank
Current Account Number	2461261011037
Account Since	2000
Credibility Factors
IndiaMART Client Since	3 Years
Years of Establishment	1993
Turn Over	(2007-08) Rs.60.000 millions
Turn Over Year	(2008-09) Rs.300.000 millions
Standards & Certifications
Quality Management Systems	9001 : 2000
Product Certificates	CRISIL
Rating ACIB (High Performance capability and Moderate financial structure.)

Trade References

· Kartika Agencies, Madurai

· New Raja Agencies, Chennai

· S K Oil Source, Chennai

Form No. 8

Name of the company

NATRAJ OIL MILLS PRIVATE LIMITED

Presented By

M/s Natraj Oil Mills Private Limited and Canara Bank, SSi Branch, 176, I Floor, North Veli Street, Madurai

1) Date and description of instrument creating the change

21.10.1999

Request for overdraft facilities; Pronoto Cash Credit Agreement.

Agreement re: Collateral Security – Machinery

2) Amount secured by the charge/amount owing on the securities of charge

Rs.10.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Gingelly Oil, Seeds, Work in progress, Finished Goods of Gingelly Oil, Oil Cakes and Packing Materials such as Cans, Tins, etc. (Machinery as Collateral Security)

4) Gist of the terms and conditions and extent and operation of the charge.

Cash Credit Limit : Rs.10.000 millions

Margin 25% (Stock)

Margin 40% ( Packing Materials)

Rate of Interest: 16.83% p.a.

5) Name and Address and description of the person entitled to the charge.

Canara Bank

SSI Branch, 176, I Floor, North Veli Street, Madurai – 625 001, Tamilnadu, India

6) Date and brief description of instrument modifying the charge

11.06.2005

1. Agreement Regarding Opening of Cash Credit (Key Shut)
2. Supplemental Common Hypothecation Agreement

Both the above are dated 11.06.2005 and are related to one and same modification of charge.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

(a) Pursuant to the execution of the above agreements the overall limit of the charge is enhanced from Rs.30.500 millions to Rs.40.500 millions. The break up details of the said Overall Limit are as below:-

Nature of Limit	Existing	Revised
OCC	30.000	30.000
Against Book Debts	(10.000)	(10.000)
KCC	-	10.000
Term Loan	0.500	0.500
Over All Limit	30.500	40.500

Together with interest, cost, charges and other expenses which may accrue and / or be debited to the company’s accounts from time to time.

(b) (I) Extension of Hypothecation, as Exclusive First charge, by the Company in favour of the Bank:-

1. Of all stocks of goods such as raw materials like Oil Seeds, goods in process, finished and manufacture goods like Gingili Oil, Oil Cake and other items of stock in trade, Packing, Materials and stores, spares, components, machinery, vehicles, furniture and fixtures and all other movable goods and properties of every description of the company wherever situated, whether at the Company’s factories, places of business, residence, godowns or in transit or in the custody of processors, warehouse, agents or others or wherever else the same may be situated, lying or being stores, spares, components, stock in trade and all description of movable property in the course of delivery to the company.

2. Of all its present and future, book debts, outstanding moneys, bills receivables, claims, bills, contracts, securities, investments, cash, gold, silver, jewellery, rights and assets and rights relating to or in movable properties;

And

3. Of its Machineries / Equipments / Accessories purchased by the Company from out of the Terms Loan stated above:-

Details of Machineries

(Rs. In Millions)

Particulars	Value
Inkjet Printer with accessories	0.351
Pouch Machine	0.273
Air compressor	0.091
Total	0.715

And all other plant and machinery (Other than those specified above) having a value of Rs.2.004 millions as per the Audited Balance Sheet as at 31.03.2004 of the Company whether procured from out of the bank / institutional finance or otherwise (but excluding those already charged to other secured creditor/s)

As Security for the due payment and discharge by the Company to the Bank of all its dues under afore stated credit facilities with an existing Overall Limit of Rs.40.500 millions together with interest, cost, charges and other expenses which may accrue and / or be debited to the company’s accounts from time to time.

(b) (II) Besides the above, book debts of M/s Anjali Foods and M/s Vijaya Oil Mills Limited are also hypothecated as security for the sub limit against Book Debts of Rs.10.000 millions under the Cash Credit Limit of Rs.30.000 millions stated above.

(c) For New KCC Limit of Rs.10.000 millions

Margin – 25%

Rate of Interest – at PLR, i.e. present effective rate being 10.50% p.a.

(d) All other terms and conditions remain unaltered.

Corporate identity number of the company	U24294TN1993PTC025443
Name of the company	NATRAJ OIL MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2-16, Melur Main Road, Uthangudi, Madurai – 625 107, Tamilnadu, India
This form is for	Modification of charge
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Floating charge · Others
Particular of charge holder	Canara Bank SME Branch, Madurai, No. 50, Bye Pass Road, Madurai – 625 003, Tamilnadu, India
Nature of instrument creating charge	1. Supplemental Common Hypothecation Agreement 2. Letter of Renewal 3. Letter of the Bank confirming clearance of KCC (Seasonal) and KCC Ad hoc) Limits All the above are related to one and the same Modification of Charge.
Date of instrument Creating the charge	22.05.2007
Amount secured by the charge	Rs.44.350 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest OCC/ODBD : BPLR minus 2.00%, present effective rate being 10.50% p.a.; chargeable at monthly rests Term Loan : There is no change in the existing sanction stipulation. Terms of repayment OCC / ODBD : Repayable on demand; Limits are tenable till 02.03.2008 TL: There is no change in the existing sanction stipulations Margin OCC – 25% ODBD – 35% Term Loan – There is no change in the existing sanction stipulation. Extent and operation of the charge The charge operates as Exclusive First Charge in favour of the Bank as Security for the Reduced Overall Limit of Rs.44.350 millions together with interest, cost and charges that may accrue and / or debited to the Company’s accounts from time to time. Others Cover period for Book Debts – 45 days
Particulars of the present modification	The Overall limit is reduced from of Rs.54.350 millions to Rs.44.350 millions

Web Details

Company Profile

In 1994, Mr. K.S.R.Natarajan founded Subject, to harness the power of this potent oil extracted from the small but significant Sesame Seed. A pioneer in the oil industry, he has been instrumental in steering the company and the now popular brand "Anjali" to its present prominence with a strong background of about thirty years in the oil industry, his venture into the packaged oil business has paid rich dividends and "Anjali" has carved a niche for itself with its strong brand image. Identifying an opportunity and executing it to perfection is indeed the hallmark of a successful business. This aptly depicts the vision of the founder who is the pivotal force behind the success of "Anjali".

Subject is ideally located in a scenic environ along the Madurai-Chennai Highway in Tamil Nadu, India and is spread across an area of 5 acres. State-of-the-art machinery ensures quality products adhering to international standards.

The plant boasts of a mammoth manufacturing capacity of 900 tonnes of packed Sesame oil per month. Purity of the oil is maintained by meticulously handpicking the sesame seeds of highest quality, and extracting the oil by the traditional method of organic cold pressing without adding any refining chemicals or other additives.

After the extraction process, the oil is packed in attractive pouches of varying measures with the aid of fully automated packing and sealing machinery. Untouched by human hands the product enjoys a longer shelf life.

Charaka, the great medical legend of ancient India, has said, "Of all the Seasame Oil, Pappads, Pickles, Ketchup, snacks ,fruit pulps and Jam oils is the best".

Anjali Oils and Foods was born out of the dream of visionary entrepreneur, Mr. K.S.R.Natarajan. He was well aware of the tremendous importance of sesame, or gingelly oil in the culture of South India, and how it is used as a cooking medium, for medicinal purposes in Ayurveda, and for cosmetic use. Realizing the potential importance of this nutritionally rich oil in an increasingly health-conscious society, he founded Nataraj Oil Mills Private Limited in 1994, to provide the best quality gingelly oil to small and large consumers. Mr. Natarajan has emerged as a pioneer in the oil industry, with a strong background of about thirty years in the oil industry. His venture into the packaged oil business paid rich dividends and ‘Anjali’ carved a niche for itself with its strong brand image.

The success of ‘Anjali’ in the area of edible oils led to the growth of the brand in other related food segments, such as Pickles, Sauces, Ketchups and Jams under the banner of ‘Anjali Foods’. ‘Anjali’ had already become a household name, recognized for its purity and taste, and this was reinforced by wholesome pickles and preserves from the ‘Anjali’ brand that are an integral part of every meal. ‘Anjali Foods’ has led to a quantum leap in the Anjali story, by capturing peoples hearts and becoming a popular and sought after brand.

‘Anjali Oils and Foods’ products are produced in a fully automated manufacturing plant along the Madurai-Chennai Highway in Tamil Nadu, India that is spread across an area of 5 acres. State-of-the-art machinery, and high quality ingredients ensure quality products adhering to international standards. The products are packed completely untouched by human hands during the entire process, and are thus assured of a longer shelf life.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.43.73
UK Pound	1	Rs.80.57
Euro	1	Rs.64.29

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	-
--MARGINS	-5~5
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions